Bitcoin Slides Below $60K As Liquidations Accelerate And Strategy’s STRC Decline Adds To Market Pressure
In Brief
Bitcoin drops below $59K as $1.2B in liquidations hit crypto markets, with macro data and risk sentiment driving renewed volatility.
Bitcoin experienced a sharp decline over a short period, falling from above $61,000 to around $58,000 within an hour. According to CoinMarketCap data, BTC was trading near $59,308 after the move, representing a 3.12% decline over the previous 24 hours. During the session, Bitcoin reached a high of $61,820 before dropping to a low of $58,710.
Ethereum followed the broader market downturn, falling to approximately $1,530 and recording a 4.67% decline over the same 24-hour period.
Market volatility triggered a wave of forced position closures across digital assets. Data from CoinGlass showed that more than $1.2 billion in crypto positions were liquidated over the past 24 hours, affecting over 209,000 traders. Long positions accounted for the majority of losses, with approximately $1.2 billion in bullish bets liquidated. Bitcoin represented the largest share of liquidations, with about $658 million in positions closed.
Market Pressure Builds Around Economic Data and Risk Sentiment
The decline came as investors reacted to several macroeconomic developments, including the release of the U.S. core Personal Consumption Expenditures (PCE) inflation data, the Federal Reserve’s preferred measure of price pressures.
Core PCE increased 0.3% month over month and 3.4% year over year, matching market expectations. Headline PCE was slightly lower than forecasts, rising 0.4% month over month and 4.1% year over year. The data indicated that inflation remains persistent, but the results did not introduce a stronger-than-expected hawkish signal from the Federal Reserve.
Market expectations for two additional Fed rate hikes remained largely unchanged following the report. At the same time, stronger-than-anticipated U.S. GDP growth and personal income figures highlighted continued resilience in the economy, influencing broader risk asset sentiment.
Additional pressure emerged from equity-linked crypto exposure. Strategy’s flagship preferred stock, STRC, reached another record low following the U.S. market open. The asset, which currently provides an 11.5% annual dividend, declined 8% to $74.13, according to Yahoo Finance data. The move placed the preferred stock more than 25% below its $100 par value, a level around which Strategy had initially structured the product.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
